Dutch Scheme for Qualifying Non-Resident Taxpayer

The Dutch taxation system has suffered various changes in the last few years, one of the most recent ones being related to foreign individuals living outside the Netherlands but earning money here. The new scheme is called the qualifying non-resident taxpayer program in the Netherlands and was introduced in 2015.

If you want to know more about how individuals and companies are taxed in the Netherlands, our local consultants can offer detailed information. We also have broad experience in company registration in the Netherlands.

How to obtain the qualifying non-resident taxpayer status in the Netherlands

As mentioned above, the new tax scheme applies to people living outside the Netherlands who have income sources here. These sources can be represented by salaries or by other possessions, such as immovable properties.

There are several conditions to be met in order to qualify as a Dutch non-resident taxpayer. These conditions are:

• -          the individual must be living in an EU country, in Switzerland, Liechtenstein, Norway, Iceland, St. Eustatius Bonaire, or Saba;
• -          at least 90% of the individual’s income is subject to taxation in the Netherlands;
• -          the individual files his or her income tax returns issued by the country of residence with the tax authorities in the Netherlands;
• -          the individual can also include a tax partner in order to obtain this status, however certain conditions are imposed in this case.

If the above conditions are met, the Dutch authorities will calculate the 90% limit and the foreign citizen will be entitled to the same tax deductions, exemptions, and allowances like Dutch residents.

Tax deductions under the Dutch non-resident taxpayer status

A non-resident taxpayer can benefit from the following tax deductions under the new scheme:

-          the negative income earned from living in a home outside the country;

• -          the personal allowance and expenses related to earning an income in the Netherlands;
• -          the tax credits and the tax-free allowance granted in the Netherlands;
• -          the averaging scheme and the expenses related to listed properties.

For full information on the non-resident taxpayer status in the Netherlands, please contact us. We can also help foreign investors interested in company registration in the Netherlands.